This Small Business Month, the Canadian Franchise Association (CFA) is highlighting the local entrepreneurs behind the franchise brands Canadians interact with every day.
From grabbing a morning coffee and picking up lunch to getting a workout in, dropping a child off at a tutoring centre, taking a pet to the groomer, or calling someone for a home repair, Canadians interact with franchised businesses every day.
In fact, the average Canadian interacts with three to five franchise businesses each day. The brand names may be familiar across the country—or even internationally—but behind many of these storefronts is a local entrepreneur who has invested in building and operating a small business in their own community.
In fact, 93% of franchise establishments in Canada are locally owned by an individual business owner rather than the franchise system itself, says the CFA.
At its core, franchising is about being in business for yourself, but not by yourself. Franchisees operate their own businesses, hire employees, make day-to-day decisions, and often support local charities, sports teams, and community initiatives, while benefiting from the training, resources, and support of an established franchise system, it says.
These entrepreneurs bring their own experience, drive, and knowledge of their communities to businesses across more than 60 sectors, from food service and fitness to education, home services, senior care, and professional services.
For many entrepreneurs, franchising can provide a pathway into business ownership while giving them the opportunity to build something of their own and grow within their community.
Franchising Facts:
- Local small business owners: 93% of franchise establishments are locally owned by an individual business owner. Franchisees operate their own businesses, hire their own staff, and make day-to-day business decisions. They live, work, and contribute to the communities they serve;
- A significant economic contributor: Canada’s franchise sector represents almost $150 billion in economic activity, nearly 2 million jobs, and more than 70,000 businesses;
- 60+ sectors: Franchising extends well beyond restaurants and retail, with franchise businesses operating across more than 60 sectors, including food service, fitness, education, home services, senior care, and professional services;
- Businesses with growth potential: Many franchisees expand from one location to multiple locations, creating additional employment opportunities and contributing further to their local economies;
- Local expertise and entrepreneurship: Franchisees bring their own entrepreneurial drive, experience, and knowledge of their communities to the businesses they operate;
- A pathway to business ownership: Franchise systems can provide entrepreneurs with an established business model, training, and ongoing support as they build and operate their businesses.
In an interview with Retail Insider, Sherry McNeil, President & CEO of the CFA, talks about the role of franchisees as small business owners, the impact of franchising across Canada, and the opportunities the franchise model can provide for entrepreneurs.
What role do locally owned franchise businesses play in Canada’s small-business landscape, and how does the fact that 93 per cent of franchise establishments are locally owned challenge the perception that franchises are primarily controlled by large corporate chains?
Franchising is a significant part of Canada’s small-business landscape, creating opportunities for local entrepreneurs to build and operate businesses in the local communities they call home. In fact, 93 per cent of franchise establishments are locally owned, underscoring that franchising is very much a story of local business ownership, not just large corporate brands.
While franchisees are the independent business owners behind the brands Canadians know and love, their impact goes far beyond the products and services they provide.
They are employers, mentors, neighbours, volunteers and community supporters who know their customers and give back to causes and community groups close to their hearts.
Behind many of the franchise businesses Canadians interact with every day is a local entrepreneur who has invested their time, money and passion into building a business of their own. These franchisees hire employees from their communities, make day-to- day business decisions and contribute to their local economies.
At its core, franchising is about being in business for yourself, but not by yourself. Franchisees benefit from an established business model, training and ongoing support, while bringing their own entrepreneurial drive and knowledge of their communities to the businesses they operate.
What are the biggest advantages and challenges for entrepreneurs who choose franchising as a pathway to business ownership compared with starting an independent business from scratch?
Franchising offers a pathway to business ownership with the benefit of an established business model, brand recognition, training, and ongoing support. Rather than building every aspect of a business from the ground up, franchisees can draw on the experience, resources, and systems of an established franchise network.
Franchise systems can provide support in areas such as operations, marketing, and staff training, helping entrepreneurs navigate the process of starting and running a business. Franchisees can also learn from other owners within the network and benefit from shared knowledge and experience.
However, franchising is not a guaranteed path to success, and choosing a franchise requires careful research and due diligence.
Entrepreneurs need to understand the day-to-day requirements of the business, including the time and involvement required, the total initial investment and ongoing costs, staffing needs, hours of operation, customer acquisition and the potential timeline for achieving a return on investment.
Most importantly, they need to determine whether the business is the right fit for their skills, lifestyle, and long-term goals.
As with many industries, franchising is also experiencing a rise in fraud, as AI and other technologies become easier to use to create fraudulent documents and opportunities.
Partnering with trusted advisors, doing due diligence, and using resources from the Canadian Franchise Association (CFA) are all important steps for prospective franchisees to ensure they stress test any opportunity. Those looking to buy a franchise should visit LookforaFranchise.ca and look for the CFA Member logo on the websites, tradeshow materials, and resources provided by a franchise brand. The CFA Member logo indicates a brand has joined the CFA and signed on to its Code of Ethics.
Doing that due diligence is critical. The right franchise opportunity, combined with the right franchisee, creates a strong foundation for success.
With the franchise sector representing nearly $150 billion in economic activity, almost two million jobs and more than 70,000 businesses, what is driving the sector’s growth in Canada today?
Franchising is a significant contributor to Canada’s economy, representing nearly $150 billion in economic activity, almost two million jobs and more than 70,000 business locations. Its strength lies in a business model that can support entrepreneurs while helping established brands expand into new markets and communities.
One of the key drivers of growth is the diversity of the franchise sector. Franchising extends well beyond restaurants and retail, with businesses operating across more than 60 sectors, including food service, fitness, education, home services, senior care, professional services and construction. This diversity creates opportunities for entrepreneurs to explore different industries while meeting the needs of their local communities.
The model also provides opportunities for existing franchisees to grow from one location to multiple locations, creating additional jobs and contributing further to their local economies. At the same time, established systems, training and operational support can help entrepreneurs build on a proven business model rather than starting entirely from scratch.
Together, these factors make franchising an important pathway to business ownership and a contributor to economic growth across Canada.
How are franchisees contributing to their local communities beyond operating their businesses, including through employment, charitable initiatives and support for local organizations?
Franchisees are more than business owners. They live and work in the communities they serve, understand local needs and often find meaningful ways to give back.
Across Canada, franchisees support their communities by creating employment opportunities, sponsoring local sports teams and events, donating to charities, participating in fundraising initiatives and supporting local organizations. They also provide valuable work experience for young people and build relationships within their communities.
According to the Canadian Federation of Independent Business, 97 per cent of small business owners give back to their communities, with 74 per cent donating to local charities and causes, 56 per cent sponsoring local events and teams, and 55 per cent creating employment opportunities for youth.
These contributions demonstrate how the impact of local business ownership extends well beyond the business itself. Because franchisees are locally invested, their success can benefit employees, community organizations and the people they serve. When local franchise businesses succeed, their communities benefit too.
What trends are you seeing among Canadians entering franchising, including the types of sectors, businesses and entrepreneurs showing the greatest interest, and what opportunities do you see for future growth?
There are franchising opportunities across a wide range of sectors. While food service and retail remain two of the most familiar areas of the franchise landscape, businesses operate across more than 60 industries, including education, fitness, home services, senior care, professional services and construction. This year, we’ve also seen significant growth in professional and technical services and construction. More affordable, low-overhead models have continued to attract entrepreneurs amid inflation and rising operating costs.
Franchising continues to attract entrepreneurs from a range of backgrounds, including first-time business owners, experienced professionals and newcomers to Canada who are looking to build businesses and establish themselves in their communities.
Looking ahead, the breadth of sectors and business models available presents opportunities for more Canadians to explore business ownership. The key is understanding the options, conducting thorough due diligence and finding a franchise opportunity that aligns with their skills, financial circumstances and goals. With the right preparation and support, franchising can offer a meaningful pathway to entrepreneurship and long-term business growth.
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